The Growth Grants were introduced by Callaghan - the Government's high-tech business development body - last year and provide 20 per cent funding of research and development expenditure, capped at $5 million annually, over three years.

Eligible companies must spend at least $300,000 and 1.5 per cent of their revenue annually on R&D conducted in New Zealand. After two years of funding businesses can be granted a two-year extension.

Science and Innovation Minister Steven Joyce said the grants allowed high-value manufacturing and services firms to innovate and grow faster.

"That in turn will help lift New Zealand's export revenues, job numbers, and the incomes of Kiwi families," he said.